Mortgage Holders Offered Help With Payments

Many of us are struggling to make ends meet but for some the point of no return has been reached and they can no longer make mortgage payments. This could be a serious problem and if left could lead to eviction and house repossession. Now help is out there in the form of temporary government grants.

The Homeowners Mortgage Support will help bank customers who get into financial difficulties. Arranged in partnership between providers and the government, the move will allow people who suffer a loss of income up to two years' breathing space with their repayments.

This shows a "strong commitment" to customers, according to the British Bankers' Association's executive director.

"Responsible homeowners should feel confident that every action is being taken to ensure they can remain in their homes while their finances are restored," he said.

Commenting on the plan, the housing minster urged borrowers to contact their lenders "as soon as possible" if they required this assistance.

She added that the scheme was an "excellent co-operation" between the government, banks and financial advisors.

HMS helps people who are having difficulties meeting their mortgage repayments, but are likely to get their finances back on track in the near future.

For example, if you:

•    Are relying on one income instead of two.
•    Can no longer work overtime.
•    Have had your hours cut.
•    Had two part-time jobs, but have lost one.

To be eligible for HMS, you must have had a temporary drop in income and be unable to meet your monthly mortgage payments. You’ll need to switch to an interest-only mortgage, if you haven’t already. Your lender will also ask you to commit to paying as much as you can afford each month.

Your lender may have other conditions that you’ll need to meet. For example, they may say you should only have a small amount of savings. Talk to your lender about whether you qualify for HMS.

If you would like to know more about mortgages why not ask AnswerBank Business and Finance.